Proposed settlement information for Income Compliance Program class action

20 January 2021

We’re contacting class action group members with details of the proposed settlement and what to do if they object.

The Commonwealth and Gordon Legal agreed to settle the Income Compliance Program class action in November 2020. This means the matter won’t go to trial, if the court approves the settlement.

The settlement must be approved by the Federal Court. The approval hearing is scheduled for 6 and 7 May 2021. There won’t be an approved settlement outcome before this date.

The Court will consider objections when deciding whether to approve the settlement.

If you’re a member of the class action, you’ll get a letter from us in late January 2021. This will tell you how to object to the settlement terms, if you disagree with them.

If you don’t want to object, there’s nothing you need to do.

You’ll get the letter by post or in your myGov Inbox. This will depend on how you choose to get letters from us.

Under the proposed settlement the Commonwealth will pay $112 million, in lieu of interest, to eligible group members. Gordon Legal’s reasonable legal costs, as approved by the Court, will be deducted from this amount. Not everyone who got a class action notice will be eligible for a refund or a settlement payment.

We have repaid most refunds to the eligible people listed in the settlement.

What you need to do

Read the information in the letter about the terms of the proposed settlement.

If you don’t want to object, there’s nothing you need to do. We’ll write to you again after the settlement approval hearing. We’ll let you know if you’re eligible for a settlement payment and if so how much you’re eligible for.

If you don’t agree with the terms of the settlement, you can object. You’ll need to let the Court know you want to object and why. The Court needs to receive your objection by Friday 5 March 2021. If you choose to file documents to support your objection, you need to do so by 19 March 2021.

If you’re thinking of objecting, you may want to get independent legal advice now. It’s important to know this advice can’t be from Gordon Legal.

How to object to the proposed settlement

To object, send a completed copy of the Notice of Objection to the Victoria Registry of the Federal Court of Australia by 5 March 2021. Follow the instructions on your letter to lodge your objection.

You can find more details on the objection process in section 26 – 31 of the class action notice we send you.

Next steps

Read more about class action notices.

Page last updated: 20 January 2021